HAMBURG/PARIS: Algeria’s state grains agency OAIC purchased around 690,000 to 700,000 tonnes of optional-origin milling wheat in an international tender on Tuesday, European traders said in assessments on Wednesday.
This was similar to estimates made on Tuesday evening after the tender closed.
Estimates of purchase price were still around $372 to $373 a tonne c&f for large-size panamax vessels to $376 a tonne c&f for smaller handymax vessels, also the same as Tuesday evening, traders said. More detailed assessments of volume bought and prices are expected later.
Traders said they did not expect wheat from France to be supplied for the purchase. Algeria is France’s main export customer but Algeria again used changed quality specifications in its tender on Tuesday which favoured the supply of rival Black Sea origin wheat.
The likely origins to be supplied could include Germany, the Baltic Sea region with possibly some from Sweden, the Black Sea including Ukraine and also Argentina “but without France,” one trader said.
In its last reported tender in November, Algeria was believed to have taken a substantial amount of Russian wheat in a purchase of between 700,000 and 800,000 tonnes, after Algeria changed tender terms to reduce its reliance on French supplies.
Algeria does not release results of its tenders and reports are based on trade estimates.
The wheat in Tuesday’s tender was sought for shipment in 2022 in three periods from the main supply regions including Europe: Jan. 16-31, Feb. 1-15 and Feb. 16-28. If sourced from South America or Australia, shipment is one month earlier.
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